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Liquidity Services Uses Strategic Asset Liquidation to Turn Client Challenge Into Opportunity

Lotte-CS

Industry

Fast-Moving Consumer Goods

Challenge

LOTTE faced multiple challenges in closing its facility, including a lack of in-house human resources to manage the process, difficulty accessing a sufficient pool of buyers, and the need to ensure strict compliance.

Results

Our tailored online auction strategy and dedicated support successfully navigated the complexities of the LOTTE Qingdao Foods plant closure within a tight two-month schedule. This approach ensured compliance, maximized asset recovery, and delivered impressive results for the client. The strategic execution culminated in a highly successful auction.240+ bids were placed across the seven lots with a 100% sell-through rate.

3
Auction Events
1
Private Sale
$6M
Total Recovered Capital

Background

Faced with the challenge of closing their production facility within a stringent two-month timeline, LOTTE Qingdao Foods Co., Ltd. turned to Liquidity Services for expert management of their complex asset liquidation process.

The Challenge

LOTTE faced multiple challenges in closing its facility, including a lack of in-house human resources to manage the process, difficulty accessing a sufficient pool of buyers, and the need to ensure strict compliance. The two-month timeline added further pressure, as they needed to complete site clearance by October 30, 2023, and secure the sale of all assets with funds recovered by September 30, 2023.

The Results

To achieve these goals, Liquidity Services crafted a tailored asset liquidation strategy:

  • Online Auction of Production Lines and Key Assets: LOTTE's assets, including entire production lines and high-value individual items, were divided into seven lots to attract a broader spectrum of buyers and maximize sale value.
  • Integrated Marketing Promotion: A robust marketing campaign was launched, targeting local dealers, end-users, and international buyers to ensure wide participation and competitive bidding.
  • Dedicated Onsite Support: Throughout the project, Liquidity Services provided dedicated onsite support, handling cataloging, coordinating buyer inspections, and managing asset removals to streamline the entire process.

The auctions were conducted through AllSurplus, a Liquidity Services marketplace, which provided transparency and maximized buyer engagement and competition. Liquidity Services effectively met LOTTE’s primary objectives: maintaining compliance, leveraging an extensive buyer network, and achieving a 100% sell-through rate to generate substantial working capital.

Our tailored online auction strategy and dedicated support successfully navigated the complexities of the LOTTE Qingdao Foods plant closure within a tight two-month schedule. This approach ensured compliance, maximized asset recovery, and delivered impressive results for the client. The strategic execution culminated in a highly successful auction.240+ bids were placed across the seven lots with a 100% sell-through rate.

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